Mike Ashley's Frasers ups stake in Hugo Boss to over 15%
19/01/2021 19:35
Jan 19 (Reuters) - Mike Ashley-led Frasers FRAS.L said on
Tuesday it has increased its stake in German luxury fashion
house Hugo Boss BOSSn.DE to 15.2% through stocks and
derivatives, part of Ashley's ongoing drive to take the British
sportswear retailer upmarket.
Frasers, known as Sports Direct before its takeover of House
of Fraser, is raising the stake for the second time having
increased it to 10.1% in late June after disclosing an initial
5.1% holding earlier that month.
The company said it now held 3.6 million shares of common
stock, representing 5.1% of Hugo Boss's total share capital.
It also has 3.4 million shares via contracts for difference
and 3.7 million shares via the sale of put options, which
together represent 10.1% of the Frankfurt-listed company's share
capital. urn:newsml:reuters.com:*:nASN000QEW
Frasers said its maximum aggregate exposure relating to the
stake change was about 275 million euros ($333 million) after
taking into account the premium it will receive under the put
options. In mid-2020 the number was 204 million euros.
"This investment reflects Frasers Group's growing
relationship with Hugo Boss and belief in Hugo Boss's long-term
future. Frasers Group intends to be a supportive stakeholder and
create value in the interests of both Frasers Group's and Hugo
Boss' shareholders," Frasers reaffirmed in a statement.
The company also holds a near 37% stake in Mulberry MUL.L
and has said it could make an offer for the British luxury
brand. urn:newsml:reuters.com:*:nL8N2I52SZ
(Reporting by Muvija M in Bengaluru; Editing by Giles Elgood)
((Muvija.M@thomsonreuters.com; within UK: +44 20 7542 1810,
outside UK: +91 80 61822698; Twitter: https://twitter.com/muvija_m;))